The cloud-based software testing platform LambdaTest has raised $38 million in Series D funding to expand its AI-driven capabilities and fortify its position in existing markets. The funding round, led by Avataar Ventures with participation from Qualcomm Ventures, brings the company’s total funding to $108 million.

LambdaTest offers a robust infrastructure that enables businesses to test their applications across over 5,000 browser and operating system combinations. Rather than investing in costly testing setups, companies can leverage LambdaTest’s cloud platform to ensure their software functions seamlessly across diverse environments. The platform also includes physical labs equipped with thousands of devices for in-depth testing.

This investment comes at a time when software testing is under pressure due to the increasing prevalence of AI-generated code. A LambdaTest survey of over 1,600 teams found that only 23 percent of testing bandwidth is allocated to test authoring and preparation. A significant portion of time is consumed by operational tasks such as debugging, maintaining tests, and managing test environments.

To address these challenges, LambdaTest recently introduced KaneAI, a platform designed to automate repetitive testing tasks. Described as an “AI Native QA Agent-as-a-Service,” KaneAI is said to reduce manual effort in test script generation by up to 70%. According to Asad Khan, CEO and co-founder of LambdaTest, the platform empowers teams to optimize their testing processes, making them more efficient and effective.

LambdaTest also boasts HyperExecute, a tool that accelerates testing by up to 70% compared to traditional cloud grids. Additionally, its innovative features, such as flaky test detection and automated error categorization, have proven effective in reducing time spent on error reporting and analysis. Smart analytics and automatic test retries further enhance its value proposition.

Quinn Li of Qualcomm Ventures praised LambdaTest’s comprehensive suite of AI-driven solutions, emphasizing their importance in continuous testing and streamlining CI/CD pipelines. Meanwhile, Nishant Rao of Avataar Ventures commended the team’s disruptive innovations, highlighting their impact on the software testing landscape.

Since its establishment in 2017, LambdaTest has served over 15,000 customers, including Fortune 500 companies, executing more than 1.2 billion tests on its platform. Competing with BrowserStack and SauceLabs, the company plans to use the new funds to deepen its technological advancements and expand market reach. This investment round was advised by Avendus.